CoreWeave Stock Drops 11.4% Amid Concerns Over Spending and Financial Performance
On Friday, CoreWeave (CRWV) shares fell by 11.4%, closing at $71.88 after a week of volatility that erased gains from earlier in the week when prices had reached above $86. Despite positive news on Wednesday where Alphabet increased its capital spending outlook and expressed interest in third-party AI infrastructure, CoreWeave's stock declined sharply by Friday. The sell-off appears to be driven more by concerns over financial performance than a lack of demand for its services. While the company reported 112% year-over-year revenue growth in Q1 to $2.08 billion and had a backlog of $99.4 billion, investors were troubled by declining margins and significant capital expenditures outpacing revenue. CoreWeave plans to spend between $31 billion and $35 billion on capex this year—far exceeding its past 12 months' revenue of about $6.2 billion. The company also faces rising interest expenses, with net interest expense reaching $536 million in Q1 2026 alone.
Tickers: $CRWV
Topics: AI infrastructure cloud computing earnings performance market reaction